Chipotle’s first quarter saw positive market reception despite revenue missing Wall Street expectations, as management highlighted multiple factors behind the results. CEO Scott Boatwright pointed to weather disruptions and a broad pullback in consumer restaurant spending, citing internal survey data that showed economic uncertainty as a key reason customers visited less often. Management also credited new back-of-house initiatives and the introduction of Chipotle Honey Chicken as meaningful, with the latter driving incremental transactions and strong guest feedback.
Is now the time to buy CMG? Find out in our full research report (it’s free).
Chipotle (CMG) Q1 CY2025 Highlights:
- Revenue: $2.88 billion vs analyst estimates of $2.94 billion (6.4% year-on-year growth, 2.1% miss)
- Adjusted EPS: $0.29 vs analyst estimates of $0.28 (4.7% beat)
- Operating Margin: 16.7%, in line with the same quarter last year
- Locations: 3,781 at quarter end, up from 3,479 in the same quarter last year
- Same-Store Sales were flat year on year (7% in the same quarter last year)
- Market Capitalization: $69.23 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Chipotle’s Q1 Earnings Call
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Andrew Charles (TD Cowen) asked how rising fast-casual competition might affect Chipotle’s ability to drive positive traffic. CEO Scott Boatwright responded that Chipotle’s value proposition and speed continue to set it apart, with little observed impact from nearby competitors.
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Sara Senatore (Bank of America) inquired whether the recent sales slowdown reflected tough comparisons or a fundamental shift in consumer behavior. CFO Adam Rymer attributed most of the softness to broader macroeconomic trends rather than company-specific issues.
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David Tarantino (Baird) questioned whether internal metrics indicated any brand-specific weakness. Boatwright emphasized that operational, people, and brand health indicators remain strong, pointing to top-three rankings in 15 perceptual drivers in their brand tracker.
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Sharon Zackfia (William Blair) asked about performance by income cohort and digital versus walk-in sales. Management noted the slowdown was broad-based and not tied to specific customer groups, with digital softness isolated to certain ordering channels.
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Gregory Francfort (Guggenheim) sought clarity on the cost and timing implications of new kitchen equipment rollouts and their expected margin benefits. Boatwright said it is too early to quantify precise margin gains, as some efficiency will be reinvested to enhance the guest and team member experience.
Catalysts in Upcoming Quarters
In upcoming quarters, StockStory analysts will track (1) the pace and impact of new kitchen equipment adoption on throughput and labor efficiency, (2) the effectiveness of increased marketing and menu innovation in driving a return to positive transaction growth, and (3) expansion progress in international markets, particularly Canada and the Middle East. Monitoring stabilization in consumer sentiment and further digital engagement gains will also be central to our evaluation.
Chipotle currently trades at $51.82, up from $48.73 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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